What is NTS.V's Intrinsic value?

Nanotech Security Corp (NTS.V) Intrinsic Value Analysis

Executive Summary

As of December 15, 2025, Nanotech Security Corp's estimated intrinsic value ranges from $0.24 to $0.24 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $0.24 -80.8%

Is Nanotech Security Corp (NTS.V) undervalued or overvalued?

With the current market price at $1.25, the stock appears to be significantly overvalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Nanotech Security Corp's intrinsic value, including:

  1. Earnings Power Value (EPV): Values the company based on its current earnings power, assuming no growth

Weighted Average Cost of Capital (WACC)

The cost of capital is a critical factor in valuation models, representing the required return for investors.

WACC Component Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.39 0.49
Cost of equity 5.0% 7.0%
Cost of debt 7.0% 7.0%
Tax rate 27.0% 27.0%
Debt/Equity ratio 0.01 0.01
After-tax WACC 5.0% 7.0%

Valuation Methods

3. Earnings Power Value (EPV)

EPV assesses a company's value based on its current normalized earnings power, assuming no growth.

EPV Component Value
Normalized Earnings $1M
Discount Rate (WACC) 7.0% - 5.0%
Enterprise Value $18M - $25M
Net Debt $(1)M
Equity Value $19M - $26M
Outstanding Shares 95M
Fair Value $0 - $0
Selected Fair Value $0.24

Key Financial Metrics

Metric Value
Market Capitalization $119M
Enterprise Value $118M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 12.85
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.01

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Earnings Power Value 100% $0.02
Weighted Average 100% $0.24

Investment Conclusion

Based on our comprehensive valuation analysis, Nanotech Security Corp's intrinsic value is $0.24, which is approximately 80.8% below the current market price of $1.25.

Key investment considerations:

  • Strong projected earnings growth (-23% to -13% margin)
  • Consistent cash flow generation
  • Conservative capital structure (Debt/Equity of 0.01)

Given these factors, we believe Nanotech Security Corp is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.